[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1412.604]

[Page 408]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1412_DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA BUYOUT 
 
        Subpart F_Contract Violations and Diminution in Payments
 
Sec.  1412.604  Misrepresentation and scheme or device.

    (a) A producer who is determined to have erroneously represented any 
fact affecting a program determination made in accordance with this part 
shall not be entitled to either direct or counter-cyclical payments and 
must refund all such payments received, plus interest as determined in 
accordance with part 1403 of this chapter.
    (b) A producer shall refund to CCC all direct and counter-cyclical 
payments, plus interest as determined in accordance with part 1403 of 
this chapter, received by such producer with respect to all contracts if 
the producer is determined to have knowingly done any of the following. 
In addition, the producer's interest in all such contracts shall be 
terminated.
    (1) Adopted any scheme or device that tends to defeat the purpose of 
the program;
    (2) Made any fraudulent representation; or
    (3) Misrepresented any fact affecting a program determination.